Market corner refers to the trading behavior that one party uses the advantage of capital or warehouse receipt to guide the market to move unilaterally, resulting in the other party's continuous losses and finally having to cut its position. Generally divided into two forms: more empty positions and more empty positions. Market monopoly is a kind of market manipulation, which mainly manipulates the spot market and the futures market to force opponents to submit, thus achieving the purpose of profiteering. It is illegal to hold a position by force. In the United States, forced liquidation generally occurs when the deliverable spot quantity is small, and the buyer in the market is forced to liquidate, with both a large number of spot and a large number of futures [1] positions, so that the empty party or seller without spot can only liquidate at a higher price after entering the delivery month, and the futures price will generally deviate from the spot price. This situation is called forced liquidation. Forced positions can be roughly divided into two ways, one is to be long and the other is to be short. Too many short positions: market manipulators use the advantages of funds or physical objects to sell a large number of futures contracts in the futures market, which greatly exceeds the ability of many parties to undertake physical objects. As a result, the futures market price has fallen sharply, forcing speculative bulls to sell contracts at low prices and admit losses, or be fined for breach of contract because of their financial strength, thus making huge profits. Short positions: In some small varieties of futures trading, when market manipulators expect that the spot commodities available for delivery are insufficient, they will build enough long positions in the futures market by virtue of their financial advantages to raise the futures price, and at the same time buy and hoard a large number of physical objects available for delivery, so the prices in the spot market will rise at the same time. In this way, when the contract is close to delivery, the chasing members and customers will either buy back the futures contract at a high price and claim for liquidation; Either buy the spot at a high price for physical delivery, or even be fined for breach of contract for not handing over the physical goods, so that long positions can make huge profits from it. [Edit this paragraph] In the early stage of the development of the domestic futures market, it is not uncommon for domestic short positions to be forced. The rubber "R608 incident" of Hainan Merchants Exchange 1996 is an example. The difference is that this strong warehouse event did not happen when the spot available for delivery was not large, but occurred during the period when the spot supply was sufficient. Every August, the domestic natural rubber supply entered the peak season. Then, in such a spot background, why are there conditions to forcibly open positions? The main reason was that the delivery system was not perfect at that time, and the delivery volume was artificially limited, which limited the delivery volume of members. Whether you can enter the delivery depends on the opening order of futures positions. Forced sellers often occupy the delivery positions of members by dividing positions, thus restricting other sellers from making spot delivery, and at the same time buying in large quantities in the futures market, resulting in a serious imbalance in market buying and selling power and a sharp rise in prices. This is the domestic way of forcing positions. [Edit this paragraph] Reasons for China's forced liquidation In the early stage of the development of China futures market, forced liquidation often occurred. Besides the defects of the distribution system, the unreasonable market structure is also one of the important reasons. This irrationality is mainly manifested in the underdevelopment of hedgers. China is an important commodity producer and consumer in the world, and it has great potential to develop hedging. However, the important work of tapping potential was ignored by people's thought of quick success and instant benefit at that time. In the early stage of the development of the futures market, the limited delivery system was implemented, which may be due to the national conditions. Designers of trading system intentionally or unintentionally ignore the process that must be experienced to realize small delivery, blindly demand that the delivery volume should reach the ideal state of the international market at the beginning, pursue the effect of small delivery through the design of limited delivery system, and restrain hedging activities to activate the market. Facts have proved that this practice is not feasible, it provides institutional support for short delivery, and also makes small delivery bubble. [Edit this paragraph] The harm and prevention of forced liquidation as a unique phenomenon and extremely common phenomenon in the early stage of domestic futures development, forced liquidation has brought extremely bad influence to the market, which not only makes it difficult to play the normal function of futures, but also harms the interests of small and medium investors. The widespread phenomenon of forced liquidation became an important reason for the country to rectify the futures market later, and preventing forced liquidation also became an important content of rectifying the futures market. In the "Interim Provisions on the Management of Futures Trading" and its four supporting measures issued during the rectification period, although the forced liquidation behavior is not explicitly targeted, it is explicitly prohibited as one of the serious market manipulation behaviors. According to the market's understanding of the root causes of forced liquidation at that time, relevant parties made important amendments to the trading rules, one of which was to change the original limited delivery system into a liberalized delivery system. On the one hand, it is clearly stipulated in laws and regulations to manipulate the market as the punishment object; On the one hand, revise a series of trading rules and methods to make them perfect.